Deutsche Bank praises Central Bank moves

ISTANBUL - Hürriyet Daily News

The Turkish Central Bank’s flexible daily policies could be considered uniquely advantageous during global fragility, according to Deutsche Bank’s monthly emerging markets report for 2012, which examines the experiences of Turkey, Brazil and Indonesia. However, the report published yesterday suggests that the central banks of all three countries should concentrate on their inflation targets.

Deutsche Bank predicts that Turkey’s long-term inflation rate will be around five percent, but foresees a 9.2 percent inflation rate for the end of 2012 and 6.5 percent in 2013.

Turkey’s 2012 growth rate will be the same as the International Monetary Fundy’s (IMF) 2.3 percent expectation, according to the report, which also expects Turkey’s growth rate to jump to 4.5 percent in 2013.

The report poses the question whether or not Turkey will be able to achieve a successful soft landing.
“Authorities in Turkey state that growth will be around 4 percent and the current account deficit, which is 8.2 percent of the gross national product (GNP), could be financed,” it reads.